STOCKS NEWS ASIA-Markets mixed, Tokyo rebounds
Thursday, September 08, 2005 5:51:09 PM (GMT-07:00)
Provided by: Reuters News
(Updates with early markets)

HONG KONG, Sept 9 (Reuters) - Asian stocks were mixed on Friday after a small decline in their U.S. peers, but Tokyo shares recovered from weakness in the previous session, ahead of Sunday's election and after news of record foreign buying.

At 0035 GMT, Japan's Nikkei average <.N225> was up 0.23 percent thanks to gains in PVC maker Shin-Etsu Chemical Co. Ltd. <4063.T>, electronics parts maker TDK Corp. <6762.T> and industrial robot maker Fanuc Ltd. <6954.T>.

According to public opinion polls, Japanese Prime Minister Junichiro Koizumi looks headed for a victory on Sunday that will provide impetus to efforts to reduce the government's role in the world's second-biggest economy.

Buying from foreigners picked up pace since Koizumi called the election. Tokyo Stock Exchange data showed foreigners have bought more Japanese stocks on a net basis in August than in any other month on record.

South Korean shares <.KS11> eased 0.19 percent as gains in LG Electronics <066570.KS> and LG Corp. <003550.KS> were offset by losses in steel maker POSCO <005490.KS> and Samsung Electronics <005930.KS>.

In Australia, weakness in the major banks and resource counters such as oil producer Woodside Petroleum <WPL.AX> drove the benchmark S&P/ASX 200 index <.AXJO> down 0.58 percent.

Taiwan's TSMC <2303.TW>, the world's largest contract maker of microchips, may rise after it beat market expectations on Thursday with only a marginal decline in August sales from a record high a year ago. Its ADRs <TSM.N> rose 1.73 percent.

TSMC's key client, Texas Instruments Inc. <TXN.N>, is also likely to spread cheer in the chip sector after it raised its profit and revenue targets for the current quarter, citing broad-based demand.

U.S. blue chips <.DJI> eased 0.35 percent on Thursday after Coca-Cola's disappointing earnings forecasts, while tech stocks <.IXIC> shed 0.28 percent.

Oil rose after the U.S. government said the post- Hurricane Katrina recovery for offshore production in the Gulf of Mexico had stalled. U.S. crude <CLc1> rose to $64.84 but was still well below last week's peak of $70.85.



Wallace